This paper describes an AC voltage regulator using AC chopper and auxiliary transformer which is series connected with main input. It has many advantages such as fast voltage control, high efficiency and low THD. A detail study of step down AC voltage regulator is described and two kinds of novel step-up/down voltage regulator for AVR application are proposed. The operation principle and PWM method of the proposed regulator are described. Experimental results show that it can be used as AC voltage regulator for special purpose very efficiently.